ImmunoGen, Inc. has entered into an agreement that grants Biotest AG exclusive rights to use ImmunoGen's Tumour-Activated Prodrug (TAP) technology with antibodies targeting an undisclosed target to develop novel anticancer therapeutics.

Under the agreement, ImmunoGen will receive a $1 million upfront payment, up to $35.5 million in potential milestone payments, and royalties on the sales of any resulting products. At specific stages during the clinical evaluation of any compound created under this agreement, ImmunoGen can elect to participate in the US development and commercialization of that compound.

"We're very pleased to enter into this agreement with Biotest, a successful European-based therapeutics and diagnostics company," commented Mitchel Sayare, PhD, Chairman of the Board and CEO of ImmunoGen. "This agreement further expands the application of our TAP technology and the opportunity for a significant financial return to ImmunoGen. Of particular importance, it provides us with the flexibility to choose to participate in the US development and commercialization of any compound created under it, which could substantially increase the upside for ImmunoGen."

Professor Dr. Gregor Schulz, Chairman of the Board of Managing Directors of Biotest, said, "The agreement with ImmunoGen is a big step for Biotest in the development of biotherapeutic medical products. In conjunction with ImmunoGen's TAP technology, our BT-062 antibody, with its specific efficacy mechanism and target accuracy, could represent a cancer treatment with enormous potential. We can now exploit this potential internationally. We are delighted to have the exclusive right to use ImmunoGen's proprietary technology with antibodies to BT-062's target, and believe the compound or compounds we develop using it will have a favourable, patent-protected competitive position."

The agreement grants Biotest exclusive rights to use ImmunoGen's maytansinoid TAP technology with antibodies to an undisclosed target to create anticancer therapeutics, which are expected to be developed for the treatment of multiple myeloma and other cancers. ImmunoGen also receives manufacturing payments for any preclinical and clinical materials made at the request of Biotest.

The agreement provides ImmunoGen with the right to elect to participate in the US development and commercialization of any resulting compound in lieu of potentially receiving the milestone payments not yet earned and royalties on the US sales of that product. ImmunoGen can exercise this right at certain points in the clinical evaluation of the compound by payment to Biotest of an agreed-upon fee of $5 million or $15 million, depending on the stage of development. Upon exercise of this right, the two companies would share equally the associated costs of product development and commercialization in the US along with the profit, if any, from US product sales.

A TAP compound consists of a tumour-targeting antibody with a potent cell-killing agent attached. The antibody component is designed to bind to a target found on cancer cells and serves to deliver the TAP compound specifically to these cells. Once a TAP compound has bound to and entered the cell, the attached cell-killing agent is able to kill the cancer cell. ImmunoGen develops its own TAP compounds and also outlicenses its TAP technology to other companies for use with their proprietary antibodies.